HomeMy WebLinkAbout1320RESOLUTION UO. /3JD
A RESOLUTION of the City
Council of the City of Kent,
Washington, approving amendments to
the Interlocal Agreement creating
the Washington Cities Insurance
Authority.
WHEREAS, under the authority of Chapter 39.34 Revised Code of
Washington, public agencies, including municipalities in the State
of Washington, are authorized to enter into interlocal agreements
to jointly exercise their powers; and
WHEREAS, by such an interlocal agreement (the "Agreement"),
the Washington Cities Insurance Authority ("WCIA") was formed and
has been a functioning and operating organization for the past ten
years; and
WHEREAS, the city of Kent has been and currently is a member
of WCIA; and
WHEREAS, WCIA membership has grown to include approximately
seventy Washington cities; and
WHEREAS, Article 26 of the Agreement allows amendment of the
Agreement only by unanimous approval of all member cities; and
WHEREAS, it is now in the best interest of the city of Kent
and WCIA that Article 26 of the Agreement be amended so that, in
the future, additional amendments to the Agreement can be adopted
by a two-thirds, rather than unanimous, vote of all member cities;
and
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WHEREAS, other minor amendments to the Agreement are also
necessary to conform with current statutory language, to clarify
the Agreement's intent, and to conform with current industry
standards regarding insurance matters. NOW, THEREFORE,
The City Council of the City of Kent, Washington, does hereby
resolve as follows:
Section 1. The attached proposed changes to the WCIA
Interlocal Agreement, which are attached hereto as Exhibit A and
incorporated herein by this reference are hereby approved and
adopted.
Section 2. WCIA is further approved to present these same
amendments to each other member city council for ratification and
approval.
Passed at a regular meeting of the City cou cil of the City of
Kent, Washington, this /8' day of <. , 1992.
Concurred in by the Mayor of t
of cl&~~ , 1992.
this 11 day
DAN KELLEHER, MAYOR
ATTEST:
2
APPROVED AS TO FORM:
I hereby certif¥ that this
Resolution No o /3 ~ 0 , passed
of Kent, Washington, on the /f
\ICIAMEND.WPF
3
is a true and correct copy of
by the Cit~Council of the City
day of LL:fd..1~ , 1992 o
(
WCIA EXECUTIVE COMMITTEE MEETING
OCTOBER l.2, 1.990
SEA-TAC MARRIOTT
New Business: Interlocal Language Change
Baclcgroun~:
(
A 1990 goal entails a review of current interlocal
language to streamline future administrative processes,
~----~simplify functions and clarify terms.
Areas requesting specific updating include Article 26 -
Alne:'1dlnent, to allow future inter local changes by a two-
thirds majority rather than a unanimous vote. Also a
requested change in Article 13 -Joint Protection Program
Development, to generalize the assessment formula specifics.
Finally to modernize terms to become consistent with self-
insurance industry standards.
Discussion:
Article 26 -Amendment: The original 9 cities chose to
do business unanimously in a show of solidarity. As a
practical matter, 7 0 cities may have difficulty in doing
business with this requirement. The · requested two-thirds
majority (the same as for U. s. Constitution changes) allows
a greater flexibility for doing business while ensuring the
consensus factor.
Article 13 -Joint Protection Program Development: The
second area of change envisions greater sophistication in
the assessment formula, with more change to come from both
outside sources such as GASB and a more solid loss
experience base. New language generalizes the assessment
componen~s and intent, while providing flexibility for
future changes.
Lastly, change of terms helps relate us to the self-
..... insurance industry rather than the insurance industry.
Recommen~ation:
Passaae of attached language change to Article 26, and
Article 13~ and individual terms throughout.
WCIA Interlocal Agreement October 1, 1991 Page 1
3 INTERLOCAL AGREEMENT:
4
5 CREATING THE WASHINGTON CITIES
6
7 INSURANCE AUTHORITY
8
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10 THIS AGREEMENT is made and entered into in the State of
11 washington by and among the municipal corporations organized and
12 existing under the Constitution or laws of the State of Washington,
13 hereinafter collectively referred to as "Member cities" or "Cities",
14 and individually as "Member City" or "City" which are parties
15 signatory to this Agreement and listed in Appendix A, which is
16 attached hereto and made a part hereof. Said Cities are sometimes
17 referred to herein as "parties 11 •
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19
20 RECITALS
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22 WHEREAS, Ch. 48.62 RCW provides that two or more local
23 governmental entities may, by interlocal agreement,-~~o¥±oe-~~
24 jointly purchase insurance, jointly self insure, and/or jointly hire
25 risk management services for a~y-~~~~e5e-hy-any authorized purpose by
?6 £DY_one or more of certain specified methods, and;
~!; WHEREAS, each of the parties to this Agreement desires to JO~n
29 together with the other parties for the purpose of pooling their self-
3 0 insured losses and jointly purchasing excess insurance and
31 administrative services in connection with a Joint Protection Program
32 for said parties, and;
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34 WHEREAS, it appears economically feasible and practical for the
35 parties to this Agreement to do so;
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3 7 NOW, THEREFORE, for and in consideration of all of the mutual
38 benefits, covenants and agreements contained herein, the parties
39 hereto agree as follows:
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42 ARTICLE I
43
44 Definitions
45
46 The following definitions shall apply to the provisions of the
47 Agreement:
48
49 (a) "Authority" shall mean the Washington Cities Insurance
50 Authority created by this Agreement.
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"'2 (b) "Board of Directors" or "Board 11 shall mean the governing
body of the Authority.
WCIA Interlocal Agreement October 1, 1991 Page 2
(c) "Claims" shall mean demands made against the Authority
3 arising out of occurrences which are within tt:e Authority's Joint
4 Protection Program as developed by the Board of Dlrectors.
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6 (d) "Excess Insurance" shall mean that insurance purchased on
7 behalf of the Authority to protect the funds of the Authority against
8 catastrophes or an unusual frequency of losses during a single year.
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10 (e) "Executive committee" shall mean the Executive Committee of
11 the Board of Directors of the Authority.
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13 (f) "Fiscal Year" shall mean that period of twelve months which
14 is established as the fiscal year of the Authority.
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16 (g) "%Bsliral'leeCoverage" shall mean and include self-insurance
17 through a funded program and/or any commercial insurance contract.
18
19 (h) "Executive Director" shall mean that employee of the
20 Authority who is appointed by the Board of Directors, and responsible
21 for the management and administration of the Joint Protection Program
22 of the Authority.
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25 ARTICLE 2
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Purpose
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29 This Agreement is entered into by cities in order to provide more
30 comprehensive and economical liability coverage, to provide for the
31 economical and self insurance pooling of ~"~~~a"ee--eeve~a~erisk
32 exposures for all forms of insurance available or required by law for
33 municipal corporations and for which State law authorizes the
34 formation of pooling organizations to provide such insurance, to
35 reduce the amount and frequency of Cities losses, and to decrease the
36 cost incurred by cities in the handling and litigation of claims.
37 This purpose shall be accomplished through the exercise of the powers
38 of Cities jointly in the creation of a separate entity, the Washington
39 Cities Insurance Authority, to administer a Joint Protection Program
40 wherein cities will jointly pool and self insure their losses and
41 claims, and rr.ay jointly purchase excess insurance and administrative
42 and other services including claims adjusting, data processing, risk
43 management consulting, loss prevention, legal and related services.
44
45 It is also the purpose of this Agreement to provide, to the
46 extent permitted by law, for the inclusion at a subsequent date of
4 7 such additional municipal corporations organized and existing under
48 the Constitution or laws of the State of Washington as may desire to
49 become parties to this Agreement and members of the Authority, subject
50 to approval by the Board of Directors.
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WCIA Interlocal Agreement October 1, 1991 Page 3
It is also the purpose of this Agreement to provide, to the
extent permitted by law, that the Authority may, in the discretion of
its Directors contract with non-member Cities or other municipal
corporations in the state of Washington to provide, at a reasonable
charge, such non-member Cities or municipal corporations
administrative and other services including claims adjusting, data
processing, risk management consulting, loss prevention and training.
ARTICLE 3
Parties to Agreement
Each party to this Agreement certifies that it intends to and
does contract with all other parties who are signatories of this
Agreement and, in addition, with such other parties as may later be
added to and signatories of this Agreement pursuant to Article 19.
Each party to this Agreement also certifies that the deletion of any
party from this Agreement, pursuant to Articles 20 and 21, shall not
affect this Agreement nor such party's intent to contract as described
above with the other parties to the Agreement then remaining.
ARTICLE 4
Term of Agreement
29 This Agreement shall become effective on January 1, 1981, and
30 shall continue for not less than three years until and unless
31 terminated as hereinafter provided.
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34 ARTICLE 5
35
36 Creation of Authority
37
38 Pursuant to Ch. 48.62 RCW, the debts, liabilities and obligations
39 of the Authority shall not constitute debts, liabilities or
40 obligations of any party to this Agreement.
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43 ARTICLE 6
44
45 Powers of Authority
46
47 (a) The Authority shall have the powers common to cities and is
48 hereby authorized to do all acts necessary for the exercise of said
49 common powers, including, but not limited to, any or all of the
50 following:
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1)
2)
To make and enter into contracts;
To incur debts, liabilities or obligations;
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WCIA Interlocal Agreement october 1, 1991 Page 4
3) To acquire, hold or dispose of property, contributions
and donations of property, funds, services and other forms
of assistance from persons, firms, corporations and
governmental entities;
4) To sue and be sued in its own name; and
5) To exercise all powers necessary and proper to carry
out the terms and provisions of this Agreement, or otherwise
authorized by law.
(b) Said powers shall be exercised pursuant to the terms hereof
and in the manner provided by law.
ARTICLE 7
Board of Directors
(a) The Authority shall be governed by the Board of Directors
which is hereby established and which shall be composed of one
representative from each Member city who is an employee or official of
that City, as appointed by the City Council, Commission, or appointing
official of that City. Each City Council, Commission, or appointing
official in addition to appointing a member of the Board, shall
appoint at least one alternate who also shall be an officer or
employee of that City. The alternate appointed by a City shall have
the authority to attend, participate in and vote at any meeting of the
Board when the regular member for whom he or she is an alternate is
absent from said meeting.
(b) Each member or alternate of the Board shall be appointed for
a one year term and until a successor is appointed. Each member or
alternate shall serve at the pleasure of the City by which he or she
has been appointed as long as he or she is an officer or employee of
the City.
(c) Each member of the Board shall have one vote.
ARTICLE 8
Powers of the Board of Directors
The Board of Directors of the Authority shall have the following
powers and functions:
(a) The Board may elect from its members, pursuant to Article 10
of this Agreement, an Executive Committee to which it may give
authority to make and implement any decisions, including those
involving the administration of the Authority, except those decisions
that would require an amendment of this Agreement, under Article 26
herein.
WCIA Interlocal Agreement October 1, 1991 Page 5
(b) The Board may review all acts of the Executive Committee,
3 and shall have the power to modify andjor override any decision or
4 action of the Executive Committee upon a majority vote of the entire
5 Board of Directors.
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7 (c) The Board shall review, modify if necessary, and approve the
8 annual operating budget of the Authority.
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10 (d) The Board shall receive and review periodic accounting of
11 all funds under Article 14 and 15 of this Agreement.
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13 (e) The Board shall have the power to conduct on behalf of the
14 Authority, all business of the Authority which the Authority may
15 conduct under the provisions hereof and pursuant to law.
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17 (f) The Board shall determine and select a Joint Protection
18 Program for the Authority.
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20 (g) The Board shall determine and select all necessary
21 instruments of coverage i~~~~a~ee,--~~~~-~--i~~~~a~ee,
22 ~eee~~a~y-to carry out the Joint Protection Program of the Authority.
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24 (h) The Board shall have the authority to contract for or
25 develop various services for the Authority, including, but not limited
26 to claims adjusting, loss control and risk management consulting
..:d
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services .
(i) The
Authority and
Director.
Board
shall
shall appoint
receive and
an Executive Director of the
act upon reports of the Executive
( j) The Executive Director shall have the power to hire such
persons as the Board authorizes for the administration of the
Authority, including the "borrowing" of management-level employees
from one or more of the Member Cities to assist in the development
phase of the Joint Protection Program of the Authority, subject to the
approval of the Member City. Any Member City whose employee is so
"borrowed" according to this provision shall be reimbursed by the
Authority for that employee's time spent or services rendered on
behalf of the Authority.
(k) The Executive Director shall have the general supervisory
control over the day-to-day decisions and administrative activities of
the Authority.
(1) The Board shall have such other powers and functions as are
provided for in this Agreement, including, but not limited to, the
power to authorize the contracts with non-member Cities or municipal
corporations and the "Authority", to provide services to such non-
members as set forth in Article 2, upon such terms and conditions as
the Director shall decide appropriate.
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WCIA Interlocal Agreement October 1, 1991 Page 6
ARTICLE 9
Meetings of the Board of Directors
(a) Meetings. The Board shall provide for its
adjourned regular and special meetings: provided, however,
shall hold at least one regular meeting annually.
regular,
that it
(b) Minutes. The Board of the Authority shall cause minutes of
regular, adjourned regular and special meetings to be kept and shall,
as soon as possible after each meeting, cause a copy of the minutes to
be forwarded to each member of the Board and to each City.
(c) Quorum. A majority of the members of the Board shall
constitute a quorum for the transaction of business, except that less
than a quorum may adjourn from time to time. A vote of the majority
of those members present at a meeting shall be sufficient to
constitute action by the Board.
ARTICLE 10
Executive committee
The Board of Directors may appoint at any time of the year during
~8 a Board meeting an Executive Committee of the Board of Directors which
29 shall consist of an odd number of not less than five nor more than
3 0 nine members, as determined by the Board of Directors. Two of the
31 members of the Executive Committee shall be the President of the Board
32 of Directors, and the Vice President of the Board of Directors; the
33 remainder of the members, after their original election, shall be
34 elected by the Board of Directors at the same time the officers of the
35 Board are elected in January of each calendar year. The President of
36 the Authority, or the Vice President in his or her absence, shall
3 7 serve as the Chairperson of the Executive Committee. The Board of
38 Directors may delegate any of the powers of the Board as outlined in
39 Article 8 to the Executive Committee and may establish and delegate
40 any other powers and duties the Board deems appropriate.
WCIA Interlocal Agreement October 1, 1991 Page 7
"'" 3 ARTICLE 11
4
5 Officers of the Authority
6
7 (a) President and Vice President. The Board shall elect a
8 President and Vice President of the Authority at its first meeting,
9 each to hold office for one year term and until successor is elected.
10 Thereafter in January of each succeeding calendar year, the Board
11 shall elect or re-elect the President and Vice President for the
12 ensuing year. In the event the President or Vice President so elected
13 ceases to be a member of the Board, the resulting vacancy in the
14 office of President or Vice President shall be filled at the next
15 regular or special meeting of the Board held after such vacancy
16 occurs. In the absence or inability of the President to act, the Vice
17 President shall act as President. The President, or in his or her
18 absence, the Vice President, shall preside at and conduct all meetings
19 of the Board and shall be a member and the Chairperson of the
20 Executive Committee.
21
22 (b) Executive Director. The Executive Director shall have the
23 general administrative responsibility for the activities of the Joint
24 Protection Program and shall appoint all necessary employees thereof.
25
?6 (c) Treasurer. The Treasurer shall be appointed by the Board
and shall be a person other than the Executive Director. The duties
28 of the Treasurer are set forth in Article 14 and 15 of this Agreement.
29
30 (d) Attorney. The Board of Directors shall select an attorney
31 for the Authority. The attorney may be, but is not required to be, a
32 City Attorney, from a Member City. In the event the attorney is
33 precluded from acting because of a conflict of interest or legal
34 impediment, or for other good reason, the Board may employ independent
35 counsel as the attorney for the Authority. The attorney shall serve
36 at the pleasure of the Board of Directors.
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39 ARTICLE 12
40
41 :Bsu~aBee-Coverage
42
43 (a) The :i:I'H!!I'til.-et!'l.ee-coverage provided for Member Cities by the
44 Authority shall be defined by the Board and may allow or require
45 protection for comprehensive liability, personal injury, errors and
46 omissions, contractual liability, and such other areas of coverage as
47 the State shall require or the Board shall determine.
48
49 (b) The Authority shall maintain a!'l.-:i:PI.~'til.-a!'l.ee coverage limit for
50 Member Cities determined by the Board of Directors to be adequate.
51 The Board may arrange purchase of a group insurance policy for Member
~2 Cities interested in obtaining additional coverage above this limit,
3 at an additional cost to those participating Cities.
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WCIA Interlocal Agreement October 1, 1991
(c) The Board may arrange for the
insurance deemed necessary to protect the
against catastrophes.
ARTICLE 13
purchase
funds of
Page 8_
of any other
the Authority
Development of the Joint Protection Program
(a) As soon as practicable after the effective date of this
Agreement, but prior to the effective date of the Joint Protection
Program, the Board of Directors shall adopt the Authority's Joint
Protection Program, including the ~"s~~a"ee-coverage provided for in
Article 12, the amount of initial ~~em~~msassessment, the precise cost
allocation plan and formula, the pro forma financial statement of the
Authority, and the amount and type of excess insurance ~ewhich may be
procured.
(b) The Joint Protection Program provided by the Authority shall
extend to all city department operations except transit, aviation and
hospitals, unless otherwise excluded by the Board of Directors.
(c) The initial ~~em~~massessment for each City shall be
determined by the Board, in its discretion, based upon a fair formula
which sha%%may consider, but not be limited to, total City worker
hours, total City payroll, administrative experience of the City, the
previous loss experience of the City, the liability risks of the City
and the costs to the Authority of adding the City as a member.
(d) The cost allocation plan and formula adopted by the Board
shall provide for an adjustment in the Member Cities'
~~em~~msassessments at the end of the first year of operation, and
annually thereafter, in order to produce an assessment-~~em~~m for the
following year for each City shall consider, but not be limited to,
the ~ha~-~s-eqHa%-~e-~he-s~m-e£-~he-following-~h~ee-~~ems:
1) That amount of losses borne individually by the city,
as determined by the Board; and
2) The City's share of pooled losses and other expenses,
as determined by the Board; and
3) The City's contribution to a catastrophe fund and
reserves for incurred-but-not-reported losses, and amount of
such fund and reserves to be determined by the Board.
(e) The Board may at any time make s~eh-additional assessment
adjustments to correct any fund deficit as the Board deems necessary
to maintain the financial integrity of the Authoritv.~~em~~
aaj~s~me"~s-~e~~es~ee~~ve-~e-~he-~~~e~-yea~-a"d-eaeh-Membe~-e~~y-sha%%
~ay-a"y-add~~~e"a%-~~em~~-~eqH~~ed-hy-s~eh-~e~~es~ee~~ve-aa~~s~me"~·
WCIA Interlocal Agreement October 1, 1991 Page 9
(f) The Board shall adopt criteria for determining each City's
3 annual share of pooled losses, expenses and contribution to a
4 catastrophe fund which may include the City's payroll as compared to
5 the total payroll of all Member cities, the City's individual loss
6 experience, and such other criteria as the Board may determine to be
7 relevant.
8
9 (g) The annual readjustment of the amount of J'~emiHmassessment
10 shall be made and notices for readjusted J'~emiHmassessment amounts and
11 the next year's l'~emiHmsassessments shall be distributed at least
12 ninety (90) days prior to the close of each fiscal year. This
13 J'~emiHmassessment amount, together with any readjusted amount due
14 under paragraph (c) above, shall be due and payable on or before
15 fifteen (15) days after the beginning of the fiscal year.
16
17 (h) Inasmuch as some Member Cities may experience an unusual
18 frequency of losses during a single fiscal year, which could increase
19 their final l'~emiHmassessment substantially-~~e-~~~~~~}um
20 for that year and cause budgetary problems, the Board may provide for
21 payment of a portion of such aaai~ie~ai-~~ti~assessment to be made
22 over a period of time, not to exceed three years, plus reasonable
23 interest.
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?6 ARTICLE 14
~8 Accounts and Records
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30 (a) Annual Budget. The Authority shall annually adopt an
31 operating budget, pursuant to Article 8(c) of this Agreement.
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33 (b) Funds and Accounts. The Authority shall establish and
34 maintain such funds and accounts as may be required by state law and
35 propergeea accounting practice§. Books and records of the Authority
3 6 shall be in the hands of the Treasurer and shall be open to any
37 inspection at all reasonable times by representatives of Member
38 Cities.
39
40 (c) Executive Director's Report. The Executive Director, within
41 one hundred and twenty (120) days after the close of each fiscal year,
42 shall give a complete written report of all financial activities for
43 such fiscal year to the Board and to each Member City.
44
45 (d) Annual Audit. The Board may provide for a certified, annual
46 audit of the accounts and records of the Authority such audit shall
47 conform to generally accepted auditing standards. When such an audit
48 of the accounts and records is made by a Certified Public Accountant,
49 a report thereof shall be filed as a public record with each of the
50 Member Cities. Such report shall be filed within six (6) months of
51 the end of the year under examination.
WCIA Interlocal Agreement October 1, 1991 Page 10
(d) costs. Any costs of the audit, including contracts with, or
3 employment of, Certified Public Accountants, in making an audit
4 pursuant to this Article, shall be borne by the Authority and shall be
5 considered included within the term "administrative costs".
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8 ARTICLE 15
9
10 Responsibility for Monies
11
12 (a) The Treasurer of the Authority shall have the custody of and
13 disburse the Authority's funds subject to Board approval. He or she
14 shall have the authority to delegate the signatory function to such
15 persons as are authorized by the Board.
16
17 (b) A bond in the amount set by the Board, as outlined by State
18 RCW shall be required of all officers and personnel authorized to
19 disburse funds of the Authority, such bond to be paid for by the
20 Authority.
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22 (c) The Treasurer's duties shall include:
23
24 (1) Receive and receipt for all money of the Authority and
25 place it in the treasury to the credit of the Authority;
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( 2) Be responsible upon his or her official bond for the
safekeeping and disbursement of all of the Authority's money
so held by him or her;
(3) Pay, when due, out of money of the Authority so
held by him or her, all sums payable on outstanding debts of
the Authority;
(4) Pay any other sums due from the Authority money only
upon request for payment signed by the President of the
Board or the Executive Director. The Board may designate an
alternate signature for each; and
(5) Verify the report in writing on the first day of July,
October, January and April of each year to the Authority and
to Member Cities the amount of money held for the Authority,
the amount of receipts since the last report, and the amount
paid out since the last report.
ARTICLE 16
Responsibilities of the Authority
The Authority shall perform the following
discharging its responsibilities under this Agreement:
functions in
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WCIA Interlocal Agreement October 1, 1991 Page 11
(a) Provide ±~s~ra~ee-coverage by whatever means and methods the
Board deems appropriatea!!!-~, including but not limited to a
self-insurance fund and commercial insurance, as well as excess
coverage and umbrella insurance, by negotiation or bid, and purchase,
as necessary.
(b) Assist cities in obtaining insurance coverages for risks not
included within the basic coverage of the Authority.
(c) Assist each City's assigned risk manager with the
implementation of that function within the City.
(d) Provide loss prevention and safety and consulting services
to Cities as required.
(e) Provide claims adjusting and subrogation services for claims
covered by the Authority's Joint Protection Program.
(f) Provide loss analysis by the use of statistical analysis,
data processing, and record and file-keeping services, in order to
identify high exposure ope:r-ations and to evaluate proper levels of
self-retention and deductibles.
(g) Provide for cities, as needed, a review of their contracts
to determine sufficiency of indemnity and insurance provisions.
(h) Conduct risk management audits to review the participation
of each city in the program. The audit shall be performed by the
Executive Director, or, at the discretion of the Board, an independent
auditor may be retained by contract to conduct the audits.
(i) The Authority shall have such other responsibilities as
deemed necessary by the Board of Directors in order to carry out the
purposes of this Agreement.
ARTICLE 17
Responsibilities of Member cities
Member Cities shall have the following responsibilities:
(a) The City Council, Commission, or appointing official of each
City shall appoint a representative and at least one alternate
representative to the Board of Directors, pursuant to Article 7 of
this Agreement.
(b) Each City shall appoint an employee of the City to be
responsible for the risk management function within that City, and to
serve as a liaison between the City and the Authority as to risk
management.
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WCIA Interlocal Agreement october 1, 1991 Page 12
(c) Each city shall maintain an active safety officer andjor
committee and shall consider all recommendations of the Authority
I • • concerning the development and implementatlon of a loss control pollcy
to prevent unsafe practices.
(d) Each city shall maintain its own set of records, as a loss
log, in all categories of loss to insure accuracy of the Authority's
loss reporting system.
(e) Each City shall pay its ~rem~~massessment and any readjusted
ame~"~assessment promptly to the Authority when due. After withdrawal
or termination, each City shall pay promptly to the Authority its
share of any additional ~rem~~massessment and accrued interest at a
rate determined by the Board when and if required of it by the Board
under Article 22 or 23 of this Agreement.
(f) Each City shall provide the Authority with such other
information or assistance as may be necessary for the Authority to
carry out the Joint Protection Program under this Agreement.
(g) Each City shall in any and all ways cooperate with and
assist the Authority, and any insurer of the Authority, in all matters
relating to this Agreement and covered losses, and will comply with
all by-laws, rules and regulations adopted by the Board of Directors.
28 ARTICLE 18
29
30 Interim Period and Effective Date of Program
31
32 (a) Interim Period. Once this Agreement has been initially
33 signed, the estimated deposit charge for each City shall be developed
34 and presented to each City by written notice. Each City shall have
35 thirty (30) days from the receipt of such notice to withdraw from the
36 Agreement.
37
38 After the end of this thirty (30) day period, and prior to
39 December 1, 1980, each City's actual deposit charge shall be
40 determined. Each City which signed the Agreement shall be bound
41 thereby unless the actual deposit charge for the first year exceeds
42 the estimated deposit charge in the written notice. If the actual
43 deposit charge exceeds the estimated deposit charge, a Member City may
44 nevertheless, elect to proceed with its participation in the Joint
45 Protection Program by .. informing. the Authority, in writing, of its
46 decision to that effect.
47
48 (b) Effective Date. After each City's actual deposit charge for
49 the first year has been determined, written notice to that effect
50 shall immediately be given to all Cities. The Joint Protection
51 Program shall become effective thirty (30) days from the date of such
"i2 notice.
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WCIA Interlocal Agreement October 1, 1991 Page 13
(c)
effective,
Protection
Agreement.
Joint Protection Program. After this Agreement becomes
the Authority shall develop the details of the Joint
Program more fully described in Article 12 and 13 of this
ARTICLE 19
New Members
After the effective date of the Joint Protection Program is
established by the Authority, according to the provisions of Article
18, additional cities shall not be permitted to become signatories to
this Agreement, or to enter the Joint Protection Program, during the
first year of operation. Following the first year of operation, the
Authority shall allow entry in the program of new members approved by
the Board at such time during the year as the Board deems appropriate.
Cities entering under this Article will be required to pay their share
of organizational expenses as determined by the Board, including those
necessary to analyze their loss data and determine their
~~emi~msassessment.
a)
ARTICLE 20
Withdrawal and cancellation
City Withdrawal From Authority Membership
(1) A Member City may withdraw as a party to this Agreement
pursuant to requirements of Article 18.
(2) A Member City which signs the Agreement and enters the
Joint Protection Program pursuant to Article 18 may not
withdraw as a party to this Agreement and as a member of the
Authority for a three-year period commencing on the
effective date of the Joint Protection Program, as
determined by Article 18.
(3) After the initial three-year non-cancelable commitment
to the program, a Member City may withdraw from membership
only at the end of any fiscal year of the Authority,
provided it has given the Authority twelve months prior
written notice of its intent to withdraw from this
Agreement. Such notice shall be hand carried or mailed to
the offices of the Authority by certified mail.
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WCIA Interlocal Agreement October 1, 1991 Page 14
(4) Withdrawal of membership will result in automatic
cancellation of such Member City's participation in the
Joint Protection Program, any excess insurance and any other
programs offered by the Authority effective the date of
withdrawal. Further, the Authority reserves the right to
non-renew said withdrawing Member City's coverage in any
Authority program during such City's notice period.
b) Authority Termination of City Membership
1) The Authority shall have the right to terminate any
City's membership in the Authority at any time. Such
Termination of Membership shall be upon a majority vote of
the Board of Directors present at a full Board meeting where
such motion for termination of membership is presented. A
City's termination of membership shall become effective no
later than sixty (60) days after the date such motion is
passed, but in no event shall membership extend beyond the
last day of coverage in the current Authority i~~~~e~ee
eeve~ege-program in which said City is a participant.
2) For purposes of this section, Membership in the
Authority consists of a Member City's right to have a
representative on the Board of Directors and to vote on
Board matters, and the right to participate or receive
coverage in any Joint Protection Program, self-insured
retention or excess insurance program, and to utilize any
Authority services or programs.
3) The Authority shall notify a city in writing of its
intent to vote on a motion for Termination of Membership of
the City at least 30 days before the meeting at which the
motion is to be voted upon. The notification shall include
reasons for the proposed Termination of Membership. The
affected City has the right to be represented at the meeting
where the motion for Termination of Membership is to be
voted upon and will be provided an opportunity to address
the Board members present if they so choose.
ARTICLE 21
Cancellation of Coverage
a) The Authority shall have the right to cancel any Member
City's participation in any i~s~~e~ee-coverage program offered by or
through the Authority. The terms of such cancellation of coverage
will be specified in each of the coverage documents for the
Authority's various programs, except that excess coverage in any
program shall automatically cancel effective the date of cancellation
of its self-insured coverage. Further coverage in all Authority
programs shall cease effective the date of Member City's .voluntary
withdrawal of membership from the Authority.
WCIA Interlocal Agreement October 1, 1991 Page 15
b) The Authority may cancel any Member City's participation in
3 any ±n:~!ll::l~al'\ee-coverage program offered by or through the Authority
4 without termination of the Member City's membership in the Authority.
5 However, any City whose Membership in the Authority has been
6 terminated pursuant to Article 20(B) shall automatically be canceled
7 from participation in all :i:l'\~~~al'\ee-coverage programs offered by or
8 through the Authority as of the effective date of termination of
9 membership.
10
11
12 ARTICLE 22
13
14 Effect of Withdrawal
15
16 (a) The withdrawal of any city from this Agreement shall not
17 terminate the same and no city by withdrawing shall be entitled to
18 payment or return of any ~~em±~massessment, consideration of property
19 paid, or donated by the City to the Authority, or to any distribution
20 of assets.
21
22 (b) The withdrawal of any City after the effective date of the
23 Joint Protection Program shall not terminate its responsibility to
24 contribute its share of ~~em±~m-~-funds to any fund or :i:l'\s~~al'\ee
25 program created by the Authority until all claims, or other unpaid
..,6 liabilities, covering the period the City was signatory hereto have
been finally resolved and a determination of the final amount of
28 payments due by the city or credits to the City for the period of its
29 membership has been made by the Board of Directors. In connection
30 with this determination, the Board may exercise similar powers to
31 those provided for in Article 23(c) of this Agreement.
32
33
34 ARTICLE 23
35
36 Termination and Distribution
37
38 (a) This Agreement may be terminated any time during the first
39 three noncancelable years by the written consent of all Member Cities,
40 and thereafter by the written consent of three-fourths of the Member
41 Cities; provided, however, that this Agreement and the Authority
42 shall continue to exist for the purpose of disposing of all claims,
43 distribution of assets and all other functions necessary to wind up
44 the affairs of the Authority.
WCIA Interlocal Agreement October 1, 1991 Page 16
~ (b) Upon termination of this Agreement, all assets of the
3 Authority shall be distributed only among the parties that have been
4 Members of the Joint Protection Program, including any of those
5 parties which previously withdrew pursuant to Article 20 or 21 of this
6 Agreement, in accordance with and proportionate to their cash
7 (including ~remiHmassessment) payments and property (at market value
8 when received) contributions made during the term of this Agreement.
9 The Board shall determine such distribution within six months after
10 the last pending claim or loss covered by this Agreement has been
11 finally disposed of.
12
13 (c) The Board is vested with all powers of the Authority for the
14 purpose of winding up and dissolving the business affairs of the
15 Authority. These powers shall include the power to require Member
16 Cities, including those which were Member Cities at the time the claim
17 arose or at the time the loss was incurred, to pay their share of any
18 additional amount of ~remiHmassessment deemed necessary by the Board
19 for final disposition of all claims and losses covered by this
20 Agreement. A City's share of such additional ~remiHmassessment shall
21 be determined on the same basis as that provided for annual
22 ~remiHmsassessments in Article 13 (d) and (e) of this Agreement, and
23 shall be treated as if it were the next year's annual
24 premiHmassessment for that City, subject to the limits described in
25 Article 13(h) of this Agreement.
"6
28 ARTICLE 24
29
30 Provisions for By-Laws and Manual
31
32 As soon as practicable after the first meeting of the Board of
33 Directors, and within the first twelve months of the Authority's
34 existence, the Board shall cause to be developed Authority By-Laws and
35 a policy and procedure manual to govern the day-to-day operations of
36 the Authority. Each Member city shall receive a copy of any By-Laws,
37 policy statement or manual developed under this Article.
38
39
40 ARTICLE 25
41
42 Notices
43
44 Notices to Member cities hereunder shall be sufficient if mailed
45 to the office of the City Clerk of the respective Member City.
WCIA Interlocal Agreement October 1, 1991 Page 17
3 ARTICLE 26
4
5 Amendment
6
7 This Agreement may be amended at any time by the written approval
8 of two-thirds of all city Councils or Commissions of Cities signatory
9 to it, or by an amendment adopted in the manner provided for in the
10 By-Laws.
11
12
13 ARTICLE 27
14
15 Prohibition Against Assignment
16
17 No City may assign any right, claim or interest it may have under
18 this Agreement, and no creditor, assignee or third party beneficiary
19 of any City shall have any right, claim or title to any part, share,
20 interest, fund, ~~emi~massessment or asset of the Authority.
21
22
23 ARTICLE 28
24
25 Agreement Complete
26
The foregoing constitutes the full and complete Agreement to the
~8 parties. There are no oral understandings or agreements not set forth
29 in writing herein.
30
31 IN WITNESS WHEREOF, the parties hereto have executed this
32 Agreement by Authorized officials thereof on the date indicated in the
33 appropriate Appendix.
34